Bitcoin’s (BTC) Price Dove 36% in November

A break below the neckline support at $4,120 has neutralized the immediate Bullish outlook put forward by the double bottom breakout Thursday.

A move below $3,771 invalidates the Bullish setup on the daily and allow re-test of the recent low of $3,474.

A break above $4,250 would open up the Northside to $4,761 the resistance on the 4-hr chart.

Bitcoin (BTC) dover in November on high volumes, raising the possibility that the market has potentially capitulated.

Bitcoin the largest cryptocurrency by market capitalization is currently trading at $4,010.50 currently, is down 36% from its monthly opening price of $6,318. That fall marks the biggest monthly loss YTD.

Amid the losses, trading volumes jumped by 33% M0M to $158.48-B the highest mark since May.

It is worth noting that, at the start of November, Bitcoin was already down close to 70% from the record high of almost $20,000 reached in December 2017.

So, November’s losses mark an extension of the Bear market with a high-volume drop to 14-month lows below $3,500.

But BTC’s failure to produce a strong bounce despite the repeated defense of the 21-month EMA in 5 months to October might have investors disappointed, resulting in the increased sell-off as they left the market.

It is still too early to call a long-term bottom.

In the last few days prices have recovered from lows below $3,500 possibly just bargain hunting after the sell-off, but potentially the start of a corrective rally, as the 14-Day RSI reported record oversold conditions a few days ago.

Monthly Chart

On the monthly, Bitcoin is set to close below the former support, now resistance of the 21-Month EMA for the 1st time since October 2015.

A long-term Bullish reversal would only be confirmed if and when prices clear the EMA, currently lined at $5,977.

4-hr Chart

On the 4-hr Chart, Bitcoin has fallen back below the double Top neckline support at $4,120 rejected at the falling trendline. As a result, the immediate Bullish outlook has been neutralized.

The recent low of $3,474 could come into play if 1st support at $3,771 is breached.

A break above the falling trendline, if confirmed, bolster the Bullish technical setup and could yield a stronger rally toward $5,000.